The stock of Tencent Music Entertainment Group (NYSE:TME) is now priced at $15.93 and the shares are 0.3 points up or 1.92% higher compared to its previous closing price of $15.63. The stock had 6.33 million contracts set over the past session. TME shares’ daily volume is compared to its average trading volume at 10.524 million shares. However, it has a float of 636 million and although its performance was 1.66% over the week, it’s one to watch. Analysts have given the TME stock a yearly average price target of $17.99 per share. It means the stock’s upside potential is 12.93% with the TME share price recently placing at $15.7274 to $16.05. However, some brokerage firms have priced the stock below the average, including one that has called $14.
The shorts are running away from the Tencent Music Entertainment Group stock, with the latest data on short interest released on July 31, 2020, showing that short interest numbers in the TME shares have declined. Short interest in the stock represents just 6.71% of its float, but the volume has dropped by 0.
In the last trading session, Tencent Music Entertainment Group (NYSE:TME) raised by $0.26 over the week and lost -$0.12 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $17.97. The stock recorded its established 52-week high on 07/09/20.
Since 03/23/20, the stock has traded to a low of $9.22 at 72.78%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge.
Looking at current readings, Tencent Music Entertainment Group’s two-week RSI is 55.98. This suggests that the stock is neutral at the moment and that TME shares’ price movement remains stable. The stochastic readings are equally revealing at 87.88% meaning the TME share price is currently in oversold territory.
The technical chart shows that the TME stock will likely settle at between $16.08 and $16.23 per share. However, if the stock dips below $15.75, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $15.58.
Currently, the stock is trading in the green of MACD, with a reading of 0.29. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Oppenheimer raised their recommendation for TME from Perform to Outperform in August 14 review while maintain their target price of $20. UBS analysts upgraded their recommendation of the stock from Neutral to Buy while keeping its target price at $17 in a flash note released to investors on June 30. Morgan Stanley seeing the improvements upgraded the stock from Equal-Weight to Overweight on March 12, placing it at $16.
The average rating for the TME equity is 2.14 and is currently gathering a bullish momentum. Of 20 analysts tracking Tencent Music Entertainment Group polled by Reuters, 4 rated TME as a hold. The remaining 16 analysts were split evenly. However, the split wasn’t equal as a majority (16) rated it as a buy or strong buy. 0 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the TME stock price is 29.28X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 46.7 above the group’s average of 44.7. Tencent Music Entertainment Group has its P/E ratio at 3.7, which means that the stock is currently trading at a discount relative to the 6.1 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Tencent Music Entertainment Group (NYSE:TME) will increase by about 12.47%, which will see them reach $1100 million. The company’s full-year revenues are, however, expected to increase by about 17.63%, up from $3630 million to $4270 million. TME’s expected adjusted earnings should surge almost 0% to end up at $0.1 per share, while for the fiscal year, analysts project the company’s earnings to grow by about 0% to record $0.41/share.